MicroStrategy (MSTR) recently joined the Nasdaq 100, but its stock has experienced a 22% decline since the market opened on December 16, primarily due to profit-taking and the dip in Bitcoin's price. Despite being up about 380% in 2024, analysts believe MSTR's Nasdaq inclusion signifies institutional acceptance, particularly because large funds, like Invesco's QQQ, invest heavily in Nasdaq 100 stocks. The question for 2025 is whether MSTR could be included in the S&P 500, which requires positive earnings. Analysts note that MSTR’s adoption of FASB Bitcoin accounting could lead to reported positive earnings as soon as Q1. In a related trend, Bitwise announced a Bitcoin Standard Corporations ETF aimed at companies with substantial Bitcoin holdings, and MSTR, holding 444,262 BTC, fits the criteria. Other companies such as Marathon Digital and Hut 8 also qualify with significant Bitcoin assets.

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